A shift in consumer behaviour is underway in the wake of the lockdown and social distancing, which is leading to higher dependency on digital tools such as videoconferencing, collaborative applications, thereby driving up demand for telecom services.
Household penetration of home broadband in India is about 6% (as of 2019), vs. >50% for most developed markets and mainland China. We believe there could be an accelerated adoption of home broadband in India. In light of recent Covid-19 pandemic concerns, a significant portion of population is working from home. This change would help improve revenues owing to: a) higher data usage, b) faster adoption of home broadband, and c) subscribers upgrading to bigger data and telecom packs.
Adding to the Telcos benefit is the Online Classroom which is forcing Parents to get a Wired Broadband at Home for Children's Education which is the number one priority for most Indians.
